No Will or Estate Plan? Here’s What Really Happens to Your Money and Assets

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

It’s not the hottest topic, but it’s one of the most important financial conversations you’ll ever have: estate planning. On this episode of Get Rich, I sat down with Simone Hargreaves from the Estate Planning Center to unpack what happens if you don’t have a will, why a power of attorney matters, and the common estate mistakes families make when they avoid these tough conversations.

What Is Estate Planning?

Estate planning isn’t just about property or “rich people problems.” It’s about making clear decisions for your money, assets, and loved ones in case you lose capacity or pass away. A strong estate plan typically includes:

• A will, which outlines how your assets should be distributed.
  
• Powers of attorney for financial and legal decisions.
  
• An enduring guardian (or equivalent in your state) for health and lifestyle decisions.
  
• Directions for your superannuation through a binding death benefit nomination.
  

Without these documents, the government decides what happens — and chances are, it won’t align with your wishes.

Why Wills and Executors Matter

If you don’t create a will, your estate goes through a complex, time-consuming legal process called intestacy. Families must prove no will exists, sift through paperwork, and possibly deal with dozens of law firms. On top of that, your estate is distributed according to rigid state laws, not your intentions.

With a will, you appoint an estate executor, the person responsible for carrying out your wishes. It’s a big job: gathering assets, handling liabilities, applying for probate, and distributing the estate. Executors can apply for payment (1–3% of the net estate), or you can leave them a gift in your will as recognition.

Common Estate Planning Mistakes

Simone shared that one of the biggest issues she sees is DIY wills. Post-office will kits, online templates, or AI-generated wills often miss crucial details like how property is owned, whether assets fall inside or outside your estate, or tax implications. These shortcuts can cause confusion, disputes, and costly litigation later on.

Other common mistakes include:

• Not updating wills after marriage, divorce, or children.
  
• Forgetting to align superannuation nominations with the will.
  
• Failing to name guardians for minor children.
  

Family Communication and Letters of Wishes

Perhaps the most overlooked part of estate planning is communication. Families are often left in the dark, which can breed conflict during grief. By being upfront with loved ones, you reduce the risk of disputes and give clarity.

Alongside your legal documents, consider writing a letter of wishes. This non-binding document explains the “why” behind your decisions, covers practical matters like digital assets and funeral preferences, and offers guidance to your family. It can make a world of difference in how smoothly your estate is managed.

Estate Planning Solutions for Every Family

Estate planning isn’t one-size-fits-all. For some, that means engaging a professional estate lawyer. For others with tighter budgets, public trustee services may be an option — though Simone cautions to understand how fees are structured, especially if the trustee stands to benefit from administering the estate.

The key is to treat your estate plan as a living document. Life changes like new relationships, children, property purchases, or separations all mean it’s time to review and update your plan.

Avoiding estate planning is one of the costliest estate mistakes you can make. Whether it’s ensuring your superannuation is directed properly, naming the right executor, or keeping family harmony through clear communication, taking action now is a powerful form of financial protection.

If you don’t decide, the government will, and that’s rarely the outcome you’d want.

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